Analyst Meet Mumbai, December 2003

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Analyst MeetMumbai, December 2003

• Ashwini Kakkar
• CEO Managing Director

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Agenda
3
Environment
2.
Business Review and Developments
3.
Financial Performance
4.
Summary
5.
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Thomas Cook AG

• 2nd largest travel group in Europe
• 3rd largest travel group in the world
• Operates the worlds largest charter fleet
• Among the 10 largest airline fleets in Europe
• Controls the largest travel agency network in
  Europe

Large, vertically integrated travel group
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Thomas Cook AG

• Shareholding
• Deutsche Lufthansa AG 50
• KarstadtQuelle AG 50
• Revenue
• 8.1 billion Euro (financial year 2001/02)
• Customers
• 13.2. Million (financial year 2001/02)
• Employees
• 28000
• Sales Markets
• 32 tour operators and 3,600 travel agencies
• Operations in
• Great Britain / Ireland, Belgium / Luxembourg,
  Hungary, Poland, Slovakia, Slovenia, France,
  Netherlands, Austria, Egypt, India, Canada, USA /
  
• Caribbean, Thailand

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Thomas Cook India

• Share Holding
• TC Overseas 60.00
• SBI 8.33
• UTI 2.66
• Public 29.01

• TC in India
• 121 years in India
• 54 locations, 16 cities
• 1000 employees
• Oversee operations
• in 11 countries
• (Egypt to Burma)

• Board Committees
• Board of Directors
• Sub Committee of the Board
• Audit Committee
• Recruit. Rem. Committee
• Share Transfer Committee

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Thomas Cook India
ForeignExchange
Services Insurance
Leisure Travel
Business Travel
Hotels
Charter Airlines
Best Products Honest Prices
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Thomas Cook India
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Guiding Principles
Objective
1 integrated travel and related services
company in all our geographies, in terms of
profitability and volumes

• Enhance shareholder value
• Leadership in all business segments
• Sustained Profitability in consonance with local
  relevance
• Customer centric service quality
• Continued process and efficiency improvement
• Vertical integration across value chain

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Corporate Governance
Ethics Values
Codes of Conduct
Anti Money Laundering Policy
Winner of the Golden Peacock Award for Corporate
Governance for the 2nd consecutive year
Information System Policy
Vigilance Committees
Prevention of Insider Trading
Strong Commitment to Values, Business Ethics and
Transparency in all our dealings
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Awards - Year 2002-2003
Golden Peacock Award for Corporate
Governance,2003
TTG Best Travel Agency - Consecutive since 1999
First Prize for the Web Site from ABCI
Golden Peacock Award for Corporate Governance,
2002
First Prize for the Calendar from ABCI
TATA AIG for Outstanding Performance for 2001-02
National Tourism Award 2001-02 for Outstanding
Performance as Tour Operator
Professional Service, Personal Care, Industry
Choice
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Company
1.
Environment
2.
Business Review and Developments
3.
Financial Performance
4.
Summary
5.
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External Environment
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Happennings...
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Travelex

• Due to the impending Euro, in 2000 the Wholesale
  Bank Note Trading business of Thomas Cook was
  sold to Travelex.
• Retail foreign exchange and other foreign
  exchange businesses continue along with travel
  related business, with Thomas Cook
• India, in any case, was not part of the small
  divisional sale

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TCIL Happenings
Satellite Ticket Printing for BSP ticketing -
Satyam Computers
Two new airport counters at the Bandaranaike
International Airport, Sri Lanka
Retract Barriers at Mumbai, Delhi, Chennai
Bangalore
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External Environment

• Indian Tourism Industry expected to grow _at_ 20
  p.a. (WTO)
• Open sky policies to benefit the customers, with
  increased capacity
• Cash rich / time poor customers start to demand
  quality
• Indian economy is all set to record a GDP growth
  of 7 to 8
• Rupee appreciation and build up of foreign
  exchange reserves at 97 billion dollars

India presents an attractive tourism opportunity
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Challenging Environment - 2002/03

• Business adversely impacted due to
• SARS
• Terrorist attacks at prime tourist destinations
• Troubled airline industry
• Stiff competition and price wars
• Tourism Industry shows resilience
• Tourist arrivals show a positive trend with 15
  growth in 2003

SARS, Wars and General Economic Slowdown BUT WE
MANAGED..
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Tourist Arrivals show a positive trend...
In Thousand
Source - Economic Times
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Company
1.
Environment
2.
Business Review and Developments
3.
Financial Performance
4.
Summary
5.
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Travel Related Services

• No.1 in inbound charter handling, in India with a
  share of 1/3rd of the market (12 flights a week)
• No 2. in Outbound Group / Incentive Travel with a
  share of approximately 25 of the market
• Leader in business travel services to companies,
  with a market
• share of 16 of the organised market
• Expected to grow at an average of 20 p.a.
• Airline capacity and commission capping - key
  issues

Leader in key travel segments
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Financial Services

• Market Leader
• Only non-banking Authorised Dealer in India
• SWIFT Membership
• Distribution Capabilities
• On sites at banks and corporates
• Customer access through Call Centre and Web

Largest, diversified and unique
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Agenda - 2004

• Growth momentum
• Travel Related Services - 20, year on year
• Financial Related Services - 15, year on year
• Growth opportunities
• Travel Related Services
• Enlarge domestic leisure by growing rail and road
  tours
• Outbound charters
• Enhance reach through new Channels - web, call
  center agents
• Explore opportunities in the Indian Ocean Rim
  countries
• Financial Related Services
• Network expansion - High street / Gateways
• Enhance product portfolio
• Cater to all segments
• Address niche segments by leveraging Authorised
  Dealer status
• Cost volume efficiencies
• Improve productivity by increasing throughput

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Economics of our Websitewww.thomascook.co.in

• Sales grew 75
• Revenue grew 65
• Traffic grew 170
• Profitable Website contributes approx 3 to
  Holidays Sales
• Partnership with Yahoo India and Rediff.com
• Sales Breakup

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Future-proofing the Organisation

• Management in Chaos
• Best in Class Management Team
• Focus, clear direction, cogent strategies
• Investments in Technology
• Investments of the order of Rs. 20 Crores in
  setting up our LAN, WAN and upgrading hardware
  and software over a period of 5 years
• Ease of Transaction, Speed of Transaction, Cost
  of Transaction

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Company
1.
Environment
2.
Business Review and Developments
3.
Financial Performance
4.
Summary
5.
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Fourth Quarter Performance Year 2002-03
PAT up by 146
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Financial Results Year 2002-03
Revenue up by 8, Costs controlled, PAT up by 12
Strong fundamentals and proactive management
enabled TCIL to withstand the industry
catastrophes
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Hospitality Tourism Industry Context
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Performance Review
Earning Per Share (of Rs. 10)
Rs.
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Performance Review
Profit Before Tax
Rs. Lacs
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Performance Review
Profitability Ratios
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Performance Review
Share Capital Reserves
Rs. Lacs
Book Value Per Share
Rs.
Rs.
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Performance Review
Cost to Income Ratio
Debt Equity Ratio
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Performance Review
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Company
1.
Environment
2.
Business Review and Developments
3.
Financial Performance
4.
Summary
5.
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Summary
A strong global brand A strong balance
sheet Leadership through values and
innovation Diversified one stop organisation for
all travel related services
TCIL is Resilient and has Operational and
Financial Flexibility to Outperform
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www.thomascook.co.in